Bitcoin Battles the Bears as Prices Dip Below $105K – Here’s When the Bull Run Could Restart
Bitcoin finds itself in a tug-of-war between bullish momentum and bearish pressure, with its price sliding below $105K. After failing to sustain highs above $109K, BTC’s price movement has entered a consolidation phase, leaving traders and analysts wondering when the next bull run will begin.
Key Support Levels Hold Amid Growing Optimism
Despite downward pressure, Bitcoin has successfully defended its key support level at $103,485, signaling that bullish sentiment still lingers. Buyers appear cautious but optimistic, as institutional demand continues to drive significant inflows into Bitcoin spot ETFs.
- Institutional Activity Boosts Confidence: Spot Bitcoin ETFs recorded inflows of over $500 million during the past trading day, extending a seven-day streak of positive inflows. Total Bitcoin ETF assets now exceed $123 billion, reflecting sustained institutional interest.Notably, BlackRock’s Bitcoin ETF recorded trading volumes surpassing $1 billion in just two hours, signaling heightened interest from institutional and retail investors alike.
Concerns Over Long-Term Holder Liquidations
While institutional enthusiasm builds, concerns arise as long-term holders liquidate substantial amounts of BTC, raising questions about the cryptocurrency’s short-term price trajectory. Despite this, bullish targets for a potential new all-time high (ATH) remain intact, fueled by optimism in the market.
Bitcoin has displayed remarkable resilience since mid-January, suggesting that the bulls are preparing for another push. However, volatility persists as both bulls and bears battle for dominance, with price wicks extending above and below recent candlesticks. Analysts believe Bitcoin could continue in an ascending consolidation pattern through the end of January.
Technical Indicators Signal Bearish Pressure
Key technical indicators suggest that Bitcoin’s bullish momentum has weakened, although it may only be temporary:
- Chaikin Money Flow (CMF): Sinking values indicate weakening market strength.
- Directional Movement Index (DMI): Both DMI and ADX levels are nearing lower thresholds, signaling a reduced chance of an immediate bullish divergence.
- Relative Strength Index (RSI) & MACD: These indicators show declining buying pressure, with MACD hinting at a potential bearish crossover in the coming days.
Near-Term Outlook: Key Levels to Watch
Given the current scenario, Bitcoin may test support around $102.5K before rebounding. A strong upswing is expected to target the resistance zone between $106,013 and $107,419. Breaking above these levels could open the door for a new ATH, but achieving this milestone will likely require a massive influx of buying volume.
Conclusion: Eyes on the Bulls for a Breakout
Bitcoin’s ability to maintain its $103,485 support level highlights the ongoing strength of the bulls, even amid bearish pressure. With institutional activity driving substantial inflows and technicals hinting at a rebound, BTC may soon resume its upward trajectory. Traders should closely monitor key resistance levels and institutional developments as the market inches toward a potential breakout.
